PROBLEMS WITH STRATEGIC PLANNING

Question 1

What is strategic decision making

Answer 1

Strategic decision making is the process of setting an organisation’s strategic direction.

Question 2

Why can strategic decision making be difficult

Answer 2

Managers have imperfect information

It can be difficult to communicate properly with all staff

Auditing the internal and external environments may be difficult and is subjective

The internal and external environments can change

Assessing the degree of risk can be difficult

Stakeholders can come into conflict

Question 3

What is strategic implementation

Answer 3

Strategic implementation is the process of executing an organisation’s strategy.

Question 4

Why can strategic decision making be difficult

Answer 4

The strategy may not be well communicated or understood

The strategy may be resisted by staff

The strategy may not match the culture

The structure of the organisation may be inappropriate for the strategy

There may be changes to the internal/ external environment

Strategies rely on accurate forecasting - i.e the duration of a project

Strategies may require heavy investment